WHAT ARE CAPs?
CAPs, or ClimateActionPoints™, are powerful and compelling differentiators among the plethora of like-minded environmental nonprofit programs. Typically, carbon reduction programs tend to be designed and implemented by, and for, large companies and utilities that have the largest impact on the environment. Consequently, carbon emission allowances (such as those auctioned in bulk in regulated markets) are generally inaccessible to the general public. CRF changes all of that and focuses on working with individuals and the general public to take an active role in reducing carbon emissions. CRF aggregates single efforts into "bulk purchasing" of pollution allowances and converts them into ClimateActionPoints™ through an exclusive license using a Cambridge, Mass. company's patented system.
HOW DO CAPs WORK?
Fractionalizing bulk quantities of CO2 allowances into bite-sized ClimateActionPoints™ can allow small donors to contribute directly and meaningfully toward carbon reduction. What is important is that every CAP has its own unique ID as a part of a mandated numbering system guaranteeing that carbon is reduced. CarbonActionPoints™are currently denominated into two pounds of CO2 each (meaning that 1,000 CAPs is equivalent to a literal ton of carbon dioxide)
Q: What is a carbon credit?
A: A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one ton of carbon dioxide (or the mass of another greenhouse gas with a carbon dioxide equivalent to one ton of carbon dioxide.)
Q: Where did the idea of a carbon credit originate?
A: Originally, with the Kyoto Protocol, an international treaty designed to extend the United Nations Framework Convention on Climate Change (UNFCCC). It is an agreement that commits its Parties to set internationally binding emission-reduction targets, based on the premise that (a) global warming exists and (b) man-made CO2 emissions have contributed to it.
The emission reductions are measured against a hypothetical baseline that would have occurred in the absence of a particular emission reduction project. The reductions are called "credits" because they are credited against the baseline. Consequently, States establish a baseline of pollution emissions and then issue carbon credits that can be bought and traded as a market-based system. Power plants and other companies that exceed baselines must buy credits as allowance to continue operations.
Q: What is Cap and Trade?
A: In short, the "cap" is a legal limit on the quantity of greenhouse gases that a region can emit each year, and "trade" means that companies may swap among themselves the permission -- or permits -- to emit greenhouse gases.
Cap and trade commits us to responsible limits on global warming emissions and gradually steps down those limits over time. Setting commonsense rules, cap and trade sparks the competitiveness and ingenuity of the marketplace to reduce emissions as smoothly, efficiently, and cost-effectively as possible.
Q: What makes Cap and Trade work?
A: Comprehensive scope: the cap covers all measurable emissions of greenhouse gases to ensure an efficient, economy-wide transition away from carbon-based fuels. Upstream regulation: the system operates where fossil fuels enter the economy. Upstream regulation means that fewer than one-tenth of one percent of businesses interact with the system. Auction permits: to prevent unfair windfall profits for big energy companies at the expense of consumers, pollution permits should be sold at public auctions, not given away free to polluters. Limited offsets: offsets offer an alternative to carbon permits for meeting cap-and-trade coals. Offsets can be an effective part of climate policy if they are strictly limited, well-defined and closely regulated.